GST Refund to be given to Government Contractors for Contracts Executed Pre-GST : High Court
Summary in Key Points:
- Issue: A government contractor who paid GST on a contract awarded before the GST regime sought a refund based on a government circular promising refunds for such cases.
- Facts: The contractor had paid GST on the contract and approached the department for a refund, but no action was taken.
- Decision: The High Court directed the department to immediately process the contractor’s refund claim after verifying the facts and entitlement.
- Impact: The court upheld the government’s commitment to refunding GST paid on pre-GST contracts, ensuring that contractors are not unfairly burdened by the change in the tax regime.
HIGH COURT OF CHHATTISGARH
A.K. Constructions
v.
State of Chhattisgarh
Naresh Kumar Chandravanshi, J.
WPC No. 6218 of 2024
DECEMBER 13, 2024
Sumit Singh and Manish Nigam, Advs. for the Petitioner. Anmol Sharma, Panel Lawyer for the Respondent.
ORDER
1. Heard.
2. The whole grievance of the petitioner is the inaction on the part of the respondents in not refunding the amount of GST collected from the petitioner in the course of the execution of the contract that was awarded to the petitioner.
3. According to the petitioner, the contract was awarded to him during the pre-GST regime and the GST law came into force from 01.07.2017. The Government of Chhattisgarh itself had issued a circular stating that all those contractors who have been made to pay the GST in contracts which were executed prior to coming into force of the GST regime i.e. from 01.07.2017 the amount of GST paid by them would be refunded by the government upon their producing certificates in respect of the payment of GST made by them.
4. The grievance of the petitioner is that inspite of repeated approach being made to the respondents, there is a total inaction on the part of the respondents so far as refund of GST is concerned. The State counsel submits that subject to verification of facts and also taking into consideration whether the claim of the petitioner falls within the circulars and orders issued by the State Government so far as refund of GST for contracts, which were awarded prior to 01.07.2017, the claim of the petitioner shall be decided at the earliest.
5. Given the said facts and circumstances of the case, the writ petition as of now stands disposed of directing the State Authorities to immediately process the claim of the petitioner so far as refund of GST is concerned, after due verification of facts and also the entitlement part of the petitioner is concerned. Let an appropriate decision be taken keeping in view the earlier order of the State Government dated 10.10.2018 in this regard and all subsequent orders also passed in this regard by the State. The State Authorities shall also keep in mind the contention of the petitioner that in many of the similar cases, the govt. itself has refunded the GST.
6. Let an appropriate decision be taken within an outer limit of 90 days from the date of receipt of the copy of this order.
7. With the aforesaid observations, the present writ petition stands disposed of.
8. Pending application(s), if any, also stands disposed of.